CHAPTER- 5 IMPACT OF ELECTRONIC BANKING ON SERVICE QUALITY OF INDIAN BANKS

5.1 Conceptual Framework 5.2 Service Quality Conceptualization and Operationalisation 5.2.1 Managing Service Quality 5.2.2 Measuring Service Quality in Banking Sector 5.2.3 Electronic Banking and Service Quality 5.3 SERVQUAL SCALE 5.4 Various Dimensions of Service Quality for Drafting Research Instrument 5.5 Items of Final Draft of the Research Instrument 5.6 Descriptive Analysis 5.6.1 Customer Profile 5.6.2 Relationship of Customer with Banks 5.6.3 Cross Tabulation in Demographic Variables 5.7 Respondents Opinion Regarding Different Electronic Banking Services 5.8 Exploring the Relationship between Service Quality and E-banking 5.9 Service Quality Level of Banks Using SERVQUAL Model 5.9.1 Identification of Nine Service Quality Factors 5.10 Level of E-banking Services offered by Different Banks 5.11 A Comparison of Customer Satisfaction in Public Sector and Private Sector Banks 5.11.1 Customer Profile 5.11.2 Comparative Service Quality Analysis of Public and Private Sector Banks Using SERVQUAL Model 5.11.3 Comparative Analysis of E-banking Services in Public and Private Sector Banks

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CHAPTER-V IMPACT OF ELECTRONIC BANKING ON SERVICE QUALITY OF INDIAN BANKS The bank customers play a vital role in the banking sector. They are the key players of the banking industry and all the efforts are made by the banks to satisfy the desirable needs of the customers. In the present chapter, an attempt has been made to get the opinion of the bank customers regarding electronic banking services. The chapter has been divided into four sections. Section-I deals with the conceptual framework of service quality with its meaning, various SERVQUAL dimensions, theoretical framework and how electronic banking has improved the quality of service in the banking sector. Section-II deals with the demographic information of the respondents. Section-III examined the various service quality dimensions and the customers satisfaction towards electronic banking. Section-IV deals with comparative analysis of public and private sector services to frame out an opinion as to which sector is providing qualitative and efficient services to the customers. SECTION-I 5.1 Conceptual Framework Indian banking industry has suddenly witnessed a major boom. Being a globalized market, the customers seek and demand world class products. In todays global market, the competitive advantage lies in delivering high quality service to the customers. The need to achieve customer satisfaction lies in its ability to deliver better quality products to the customers. Therefore, customer satisfaction is considered as a pre-requisite for customer retention, loyalty and convenience which ultimately helps in realizing the goals of profitability, market share, growth, return on investment, productivity etc. Service quality is one of the highly debatable topic in marketing theory. There is a wide range of literature on customer satisfaction and service quality though both are different concepts but are closely related to each other. In order to judge the link between two, a deep study of both concepts is required. So, the chapter strongly emphasized on the various factors of service quality and customer satisfaction so as to examine the relationship between service quality and customer satisfaction. 5.2 Service Quality: Conceptualization and Operationalization Quality is a concept which requires a concern both in products as well as in services. Various experts have defined it as fitness for use, conformance to

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requirements, freedom from variation etc. To market a product, quality plays a pivotal role to sell a product. In fact, quality is considered as most important factor that influence on the buying behavior of the customer. Now the question arises to measure quality of service or a product. In tangible goods like products, quality can be measured by its durability and number of defects, usage of product, packaging, handling etc. However measuring the quality in intangible is a different one. As services are intangible so they are very difficult to measure. Services have a lot of intangible dimensions like communication, credibility, security, competence, reliability, responsiveness which are qualitative by nature and their value is subjective. Service quality is an abstract and elusive construct because of 4 unique features of services. 1. Intangibility (Bateson, 1977) 2. Heterogeneity (Booms and Bitner, 1990) 3. Inseparability (Carman & langeard, 1980) 4. Perishability(Stanton, J. William 2004) Services are those economic activities that typically produce an intangible product such as education, entertainment, food & lodging, transportation, insurance, trade, government, financial, real estate, medical, repair & maintenance etc. Intensified competition and deregulation has led many services and retail businesses to seek profitable ways to differentiate them; one strategy that has been related to success in these businesses is the delivery of high service quality (Rudie and Wansley 1985). So service quality has become a significant research topic in past decade due to high revenues, increased cross sell ratios, higher customer retention, purchasing behaviors (Cronin and Taylor 1994) and expanded market share. An analysis of service quality literature suggests four underlying themes: (a) It is more difficult to evaluate than quality of tangible goods. (b) Evaluation of quality is not made solely on the outcome service, they also involve the evaluation of the process of service delivery (Parasuraman, Zeithamal & Berry 1985). (c) Service cannot be separated from the creator of service. These are created, consumed and dispensed at the same time. (d) Although the services are intangible but through visualization, association, physical representation and documentation; intangibility of the services can be improved.

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So product and service quality, customer satisfaction and company profitability are inter-related with each other. Higher the quality level, higher will be the customer satisfaction which support high prices and low costs which in turn will help in improving the companys profit. 5.2.1 Measuring the Service Quality Service providers must understand two attributes of service quality. Firstly, the quality is defined by the customer and not by the product seller. Secondly, customers assess service quality by comparing their expectations to their perception of how the service is performed. In this process, there is no guarantee that expectations will be reasonable, nor there is any assurance that a customers perception of performance will be based on more than a single experience. However to deliver better quality services to the customers, it is required that services must be standardized and for standardizing the quality of a service, the delivery of the service must be substituted with machines wherever possible. For example, ATM machines, websites and mobile banking gives the same kind of services to all the customers irrespective of any human biasness in delivering the service and at the same time the machine will not suffer from any fatigue, forgetfulness and stress. But if the customer is not adapt at surfing the internet, forgets the required ATM pin number and become impatient with the branch process on a recorded telephone answering system than the quality of the service will hamper and inconsistent. So, despite of standardization and reliability of machines, this is one fact that may explain why internet shopping accounts for merely 2% of the total retail sales. So, it could be judged that although quality could be standardized by using machines but at the same time it depends upon the customers adaptation and willingness that how much the customer is patient, aware and satisfied with the machines in place of humans. This is one of the reason that despite of total automation in the banking sector still human resource play a vital role in delivering and explaining the service. 5.2.2 Measuring Service Quality in Banking Sector Customer is the kingpin for the development of trade, industry and service sector particularly in financial services. So, the significance of customer service in the banking sector came to force to compete in a market driven environment. Measuring service quality in the service sector particularly in the banking sector is more difficult than measuring the quality of manufactured goods. The service sector as a whole is very heterogeneous and what is heterogeneous may hold true for one service and may not hold for another service sector. For example, the nature of banking services is very 118

different provided by a hospital and hotel. In fact, in banking industry there are a variety of services like retail banking, corporate banking, investment banking, commercial banking, personnel banking, wholesale banking, internet banking etc. Each banking is having a variety of services. Due to this differentiation, services in this industry could not be standardized, moreover these services are intangible in nature which could not be compared or seen. The concept of customer satisfaction and service quality is interrelated with each other. Moreover satisfaction of customer depends upon service quality and service quality is increasingly offered as a strategy by marketers to position themselves more effectively in the market place (Parasuraman et.al 1988; brown and Swartz 1989; Cronin and Taylor 1992). Due to the era of e-banking quality of service has been improved a lot as compare to traditional banking services. Internet banking, Mobile banking, automated teller machine, electronic fund transfer has totally changed the way of providing services by the banks. However some banks like in private sector are providing it in a very efficient way while others are making efforts to adopt it. 5.2.3 Electronic Banking and Service Quality As customers become more sophisticated, therefore, it becomes essential to consider the use of technology to respond to their continuously change. Banking is an industry highly which is highly involved with the customers. Customers in developing economies seems to keep the technological factors of services as the yardstick in differentiating good & bad services and the human factor the employees seem to play a lesser role in discriminating the quality of service for banks. The variation in services offered by the banks develops the excellence for service quality. Banking is no longer regarded as a business dealing with money transaction alone, but it also seem as a business related to information on financial transaction (Padwal 1995). Customers whether at the corporate level or at retail level have always been important for the banks. As electronic banking is becoming more prevalent, so level of customer satisfaction is also changing the scenario of technological environment. Informational technology in form of e-banking plays a significant role in providing better services at lower cost. Several innovative IT based service such as Automated Teller Machine (ATM), Internet banking, Smart cards, Credit Cards, Mobile banking, Phone banking, Anywhere-Anytime banking have provided number of convenient services to the customer So as the service quality improves, the probability of customer satisfaction increases. Increase satisfaction in turn increase the mutual understanding, 119

customer retention and a bond of trust between customer and bank. The banks which are providing these services at large extent to customers are more reputed in the eyes of customers. But at the same time technology based product is different in public and private sector banks. Bank automation and electronic banking is fast in private sector comparative to public sector. E-banking is an improvement over traditional banking system because it has reduced the cost of transaction processing, improve the payment efficiency, financial services and improve the banker-customer relationship. The relationship between ebanking and service quality can be studied with the level of satisfaction. As the customer satisfaction is the function of customer expectation level and service quality level provided by the organization. E-banking plays a pivotal role in giving satisfaction to the customers because e-banking fills the gap between the expected and perceived service quality. So in order to fill this gap, banks should find ways of making electronic services more accessible and by allowing the customer to verify the accuracy of the e-banking transactions. There are number of reasons due to which customer satisfaction due to e-banking has improved. 1. Customer can withdraw funds, transfer funds anytime, anywhere they want. 2. Accessibility has been extended through technological development as it allows customers to do business from their home and office. 3. It makes the banking activities and transaction very simplier to understand 4. There is no requirement of direct control with bank, as services can be operated wherever customer wants. 5. It has reduced the waiting time of the customer; no long queue standing is required. 6. Availability of employees at all times is not required as these services are provided 24 hours a day, seven days a week. 7. Internet based services has enabled the corporate and retail customers to transact from home, office and traveling. 8. Online fund transfer enabled the customer to transfer funds from one bank to another or within the same bank at same time. 9. Communication, interaction between the bank and customer has been improved due to e-banking. On the whole we can say that e-banking has become pre-imminent method of carrying the banking transaction and to increase the customer satisfaction. With the 120

present chapter an effort has been made to analyze the impact of e-banking on customer satisfaction with servqual dimension. 5.3 SERVQUAL Scale For the measurement of impact of e-banking on service quality, a model named SERVQUAL was developed by Parasuraman (1988). The model consists of ten components. SERVQUAL provides a technology for measuring and managing service quality (SQ). When the technology was first published, its innovators Parasuraman, Zeithamal and Berry have further promulgated and promoted the technology through a series of publication (Parasuraman et. al.1988; 1991(a); 1991(b); 1994). Zeithamal et. al (1990; 1991;1993) (Buttle1995). Servqual fills a gap between what the customer expect by way of SQ and what he is actually getting. SQ is presented as a multi dimensional construct. In the original formulation Parasuraman et. al (1985) identified ten components of SQ. Each dimension has further four-five dimensions (1) Reliability involves consistency of performance and dependability. It also means that the firm performs the service first time and honours its promises. Specifically, it involves the following. Accuracy in billing Keeping records correctly Performing the service at designated time

(2) Responsiveness concerns the willingness or readiness of employees to provide service. It involves timeliness of service. Mailing a transaction slip immediately Calling the customer back quickly Giving prompt service (e.g., setting of appointments quickly)

(3) Competence means possession of the required skills and knowledge to perform the service. It involves: Knowledge and skill of the contact personnel Knowledge and skill of operational support personnel Research capability of the organization. The service is easily accessible by telephone Waiting time to receive service at bank is not extensive Convenient hours of operation

(4) Access involves approachability and ease of contact. It means :

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Convenient location of service facility

(5) Courtesy involves politeness, respect, consideration and friendliness of contact personnel (including receptionists, telephone operators. It includes: Consideration for the consumers property Clean and neat appearance of public contact personnel

(6) Communication means keeping customers informed in language they can understand and listening to them. It may mean that the company has to adjust its language according to different customers-increasing the level of sophistication with a well educated customer. It involves: Explaining the service itself Explaining how much the service will cost Explaining trade- off between service and cost Assuring the consumer that a problem will be handled

(7) Credibility involves trustworthiness, believability, honesty. It involves having the customers best interests at heart contributing to credibility are: Company name Company reputation Personnel characteristics of the contact personel Physical safety Financial security Confidentiality

(8) Security is the freedom from danger, risk or doubt. It involves:

(9) Understanding involves making the effort to understand the customers needs. It involves: Learning the customers specific requirement Providing individualized attention Recognizing the regular customer Physical facilities Appearance personnel Tools or equipment used to provide the service Physical representation of the service, such as a plastic credit card or a bank statement 122

(10) Tangibles include the physical evidence of the service. It includes

Other customers in the service facility

(Modified from Buttle 1995.) In their 1988 work these ten dimensions were reduced to five dimensions as follows Dimensions (1) Reliability (2) Assurance (3) Tangibles (4) Empathy (5) Responsiveness Items in scale 4 5 4 5 4

The above mentioned scale was originally developed by Parasuraman in 1985. But in the present chapter, in order to have wide coverage of the study, the ten dimensions are taken in to consideration. One of the dimension namely courtesy is having only one sub dimension, so factor analysis and data reduction was not possible for single variable. So, it was merged in to the main dimension of understanding. In order to know the impact of electronic banking on service quality, a questionnaire has been developed. It consists of 43 items related to service quality. Various Dimensions of Service Quality for Drafting of Research Instrument Reliability 1 2 3 4 5 6 7 8 9 It provides accuracy in billing. It helps in keeping records correctly. It performs the service at designated time. Responsiveness E-banking is very necessary for the development of new economy of India. It improves the quality of customer service. Response of service through e-banking is very prompt and quick. Availability of service is faster in e- banking as compare to manual banking. Competence Transfer of fund is easier through E-banking. E-Banking provides more punctuality, transparency, accountability.

10 Transfer of funds is faster as compared to manual banking system. 11 It is trusted by young generation.

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Access 12 E-Banking services are accessible via Internet banking, Mobile banking, EFT, ECS, ATM. 13 Online purchase of goods and services including online payment is easier. 14 It provides convenient location of service facility(location of ATM, POS terminals) 15 It reduces the waiting time to receive the service. Courtesy 16 It helps in better customer relationship, attracting and retaining them. Communication 17 E-Banking explains the service itself. 18 It explains the cost of service being used. 19 It assures the customer that problem will be handled. 20 It explains the trade off between service and cost. 21 E-banking provides up to date information. 22 It also provides information for well educated customers. 23 E-banking provides effective medium of promotion of various schemes. Credibility 24 E-banking increases the reputation of the banks. 25 It increases the believability, honesty and trustworthiness of the customers in banks. 26 It ensures the ability to fulfill the requirement. 27 Degree of reliability involved in Interaction with customer is more in e- banking. 28 It provides unlimited network to the banks to approach customers. Security 29 E-banking ensures physical safety of the transaction. 30 Password facility provides confidentiality to transaction. 31 It also increases the financial security. 32 Privacy can be easily maintained. Understanding 33 It provides individualized attention to the customers. 34 It provides necessary information to the customers. 35 Website of the bank is designed according to the need of the customer.

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36 It ensures to provide necessary information to the customer. 37 E-banking learns the specific requirement of the customer. Tangibility 38 Banks use advanced Computer/IT to serve clients. 39 E-banking provides modern looking equipment. 40 Physical representation of service through plastic card, credit and debit card is easy. 41 E-banking provides 24 hours, 365 days a year service to customers. 42 It helps in reducing the no. of queues in the bank branches. 43 E-banking provides more physical facilities to the customers. 5.5 Items of Final Draft of the Research Instrument S.No. Attitude Factor 1 2 3 4 5 6 7 8 9 10 Reliability Responsiveness Competence Access Courtesy Communication Credibility Security Understanding Tangibility Item No. 26,27,28 29,30,31,34 13,23,24,25 32,33,35,36 41 17,18,19,20,21,22,42 37,38,39,40,43 12,14,15,16 7,8,9,10,11 1,2,3,4,5,6 Section-II 5.6 Descriptive Analysis Descriptive analysis was done to present a profile of the respondents and also to find out the mean score and standard deviation for the items in the banking SERVQUAL. 5.6.1 Customer Profile Respondents form an important component of the primary data survey. So it is very essential that the personal profile of the respondents undergone a study. Descriptive analysis was done to present the demographic information of the respondents .The sample size consists of 400 respondents of various banks including public and private sector. In order to have an effective banking policy and marketing strategy, it is required 125 Total Items 3 4 4 4 1 7 5 5 4 6

to study the customer profile as the customers are the milestone of banking business. Sound banking system depends upon the sound customers having a good educational ground and having a regular flow of income. So first section of questionnaire includes the customers profile. The basic attributes of the respondents are income, age, sex, occupation, educational qualification and other socio-demographic information. Table 5.1 to 5.7 presents a comprehensive profile of bank customers who had participated in this research study. It can be seen from table 5.1, the sample consists of more males (71.5%) than females (28.5%).There are more respondents who are married (62.8%) than unmarried (37.3%). Majority of the respondents (52.5%) are in the age group of below 30 years and 27% are in the age group of 30-40 years. About 32.8% respondents are post-graduate, 26.5% are graduates and 20.3% are having the professional degrees. This profound that the sample is skewed towards the more educated segment of the population. About 43.3% of the respondents are serviceman, 20.5% are businessmen and 17.5% are professionist. 29.3% of the respondents are having the income more than 25,000 and 20% are having in between 10,000-15,000. 76.3% are having saving account in the banks, 16.3% are having current account and 7.5% are having salary account. Table 5.1 Gender Profile of the Customers Gender Male Female Total Frequency 286 114 400 Table 5.2 Marital Profile of the Customers Marital Status Married Unmarried Total Frequency 251 149 400 Valid Percent 62.8 37.3 100 Cumulative Percent 62.8 100 Valid percent 71.5 28.5 Cumulative Percent 71.5 100

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Table 5.3 Age Profile of the Customers Age Profile Below 30 30 -40 40-50 50-60 Total Frequency 210 108 60 22 400 Valid Percent 52.5 27 15 5.5 100 Cumulative Percent 52.5 79.5 94.5 100

Table 5.4 Educational Profile of the Customers

Education Frequency Valid Percent Cumulative Percent

Below Matric Matric and Under Graduate Graduate Post Graduate Professional Degree
Total

7 75 106 131 81 400 Table 5.5

1.8 18.8 26.5 32.8 20.3 100

1.8 20.5 47 79.8 100

Occupational Profile of the Customers Occupation Businessman Serviceman Professional Agriculturist Any other Total Frequency 82 173 70 21 54 400 Valid Percent 20.5 43.3 17.5 5.3 13.5 100 Cumulative Percent 20.5 63.8 81.3 86.5 100

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Table 5.6 Monthly Income Profile of the Customers Income

Below 10000 10000-15000 15000-20000 20000-25000 Above 25000 Total

Frequency 69 80 71 63 117 400

Valid Percent 17.3 20 17.8 15.8 29.3 100

Cumulative Percent 17.3 37.3 55 70.8 100

Table 5.7 Type of Account Type of Account Saving Current Salary Total Frequency 305 65 30 400 Valid Percent 76.3 16.3 7.5 100 Cumulative Percent 76.3 92.5 100

5.6.2 Relationship of Customers with the Banks In order to investigate the relationship between e-banking and the level of customer satisfaction, it was important to explore for how long respondents held their accounts in the banks. Table 5.8 presents the historical perspective on the banking relationship for the surveyed customer. Table 5.8 History of Banking Relationship Duration of the Banking Relationship with the Frequency Valid Percent Bank Less than 1yrs 58 14.5 1-3 yrs 3-5yrs 5-7 yrs Above 7 Total 104 63 54 121 400 26 15.8 13.5 30.3 100

Cumulative Percent 14.5 40.5 56.3 69.8 100

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The results in table 5.8 indicates that large number of respondents (30.3%) have maintained a banking relationship with the banks for more than seven years and 26 per cent of them have maintained such relationship between 1 to 3 years. However it could be observed that there is relatively high degree of stability of those customers who had maintained long term relationship with the bank they deal with. In order to retain a long term relationship with its customers, the banks should adopt a diversified strategy by providing them financing schemes with different portfolios, innovative banking products, credit cards, internet banking, onsite and offsite ATMs, Mobile banking, PC banking etc. to achieve a higher rate of growth. 5.6.3 Cross Tabulation in Demographic Variables In order to understand relationship between demographic variables like age/sex, education/occupation, type of account/ occupation etc, cross tabulation was carried out. Table 5.9 to 5.15 exhibits the cross tabulation between different variables. Table 5.9 Age/Education Wise Distribution of Customers Educational Categories
E1 E2 E3 E4 E5

Age Group

Total

Below 30 years 30 -40 40-50 50-60 N

5 (71.42) 0 (0.00) 2 (28.57) 0 (0.00) 7

47 (62.66) 16 (21.33) 4 (5.33) 8 (10.66) 75

75 (70.75) 22 (20.75) 9 (8.49) 0 (0.00) 106

59 (45.03) 44 (33.58) 21 (16.03) 7 (5.34) 131

24 (29.62) 26 (32.09) 24 (29.62) 7 (8.64) 81

210 (52.5) 108 (27) 60 (15) 22 (5.5) 400

N represents number of bank customer surveyed. Note: Figures within parenthesis in this table and all the tables to follow represent percentages while figures without parenthesis represent simple frequencies. Table 5.9 depicts age-education wise distribution of the respondents. Age wise respondents have been divided in to four age group, below 30 years, 30-40 years, 4050 years and 50-60 years. As is evident from the table as many as 210 (52.5%) respondents are below the age of 30 years. Similarly, 108 (27%) fall in the age category of 30-40 years, 60 (15%) in 40-50 years and 22(5.5%) in 50-60 years. So this shows that the maximum category comes under the age group of below 30. Education wise the table

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reveals that majority of the respondents belongs to E3 (70.75%),E2 (62.66%) and E4 (45.03%) category are from the age group of below 30 years. A large proportion of respondents from categories E4 (33.58%) and E5 (32.09%) belongs to 30 to 40 age group. Table 5.10 Age/Occupation Wise Distribution of Customers Occupational Categories O1 62 (75.60) 11 (13.41) 8 (9.75) 1 (1.21) 82 O2 86 (49.71) 53 (30.63) 27 (15.50) 7 (4.04) 173 O3 36 (51.42) 19 (27.14) 10 (14.28) 5 (7.14) 70 O4 13 (61.90) 8 (38.09) 0 (0.00) 0 (0.00) 21 O5 13 (24.07) 17 (31.48) 15 (27.77) 9 (16.66) 54
Total

Age Group Below 30 30-40 40-50 50-60 N

210 (52.5) 108 (27) 60 (15) 22 (5.5) 400

Table 5.10 reveals age-wise /occupation-wise distribution of the respondents. Occupation-wise the respondents have been divided in to five categories, i.e., Businessmen(O1),Serviceman(O2),Professional(O3), Agriculturist (O4), Any Other(O5).The above table reveals that below the age group of 30, majority of the respondents belongs to the category of businessman(75.60%), followed by O4(61.90%) and O3 (51.42%). Further the majority of the respondents in category O4 (38.09%) and O2 (30.63%) are in the age group of 30-40 years. 27.77 per cent of the respondents in O5 falls in the age group of 40-50 years. Income-wise Distribution Income-wise, the respondents surveyed have been divided into five income groups on the basis of their family income, i.e., below Rs. 10,000, Rs.10000-15000, Rs.15000-20000, Rs.20000-25000 and above 25000. The following table explains income wise and education wise distribution of the respondents among such groups respectively.

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Table 5.11 Income/ Education Wise Distribution of Customers Income Below10000 10000-15000 15000-20000 20000-25000 Above 25000 N Educational Categories
E1 E2 E3 E4 E5 Total

5 (71.42) 0 (0.00) 2 (28.57) 0 (0.00) 0 (0.00) 7

22 (29.33) 8 (10.67) 15 (20) 20 (26.67) 10 (13.33) 75

23 (21.69) 46 (43.39) 19 (17.92) 12 (11.32) 6 (5.66) 106

18 (13.74) 18 (13.74) 19 (14.50) 25 (19.08) 51 (38.93) 131

1 (1.23) 8 (9.87) 16 (19.75) 6 (7.40) 50 (61.72) 81

69 (17.25) 80 (20) 71 (17.75) 63 (15.75) 117 (29.25) 400

Table 5.11 explains income-education wise distribution of respondents. Proportionately the major respondents (29.25%) belong to the income group of above 25000. Second category consist of respondents having income of Rs.10,000 to Rs.15,000 (20%), followed by Rs.15,000 to Rs.20,000(17.75%), Rs.20,000 to Rs.25,000(15.75%). Education-wise the table reveals that 43.39 per cent of respondents from category E3 having income between Rs.10,000 to Rs.15,000.Further from category E5, 50 (61.72%) respondents belong to the income group of above 25,000. E1 (71.42%), E2 (29.33%) and E3 (21.69%) belong to the income below 10,000. However all the respondents from category E1 either belong to income group below Rs.10,000 (71.42%) or Rs.15,000 to Rs.20,000(28.57%). Table 5.12 Income/Occupation Wise Distribution of Customers Occupational Categories Income Below10000 10000-15000 15000-20000 20000-25000 Above25000 N
Total O1 O2 O3 O4 O5

39 (47.56) 3 (3.65) 17 (20.73) 10 (12.19) 13 (15.85) 82

14 (8.09) 64 (36.99) 32 (18.49) 33 (19.07) 30 (17.34) 173

1 (1.42) 11 (15.71) 16 (22.85) 11 (15.71) 31 (44.28) 70

0 (0.00) 2 (9.52) 0 (0.00) 8 (38.09) 11 (52.38) 21

15 (27.77) 0 (0.00) 6 (11.11) 1 (1.85) 32 (59.25) 54

69 (17.25) 80 (20) 71 (17.75) 63 (15.75) 117 (29.25) 400

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Occupation wise, the above table reveals that majority of the respondents 59.25 percent in the O5 category having the income more than Rs.25,000. O4 (52.38%) and O3 (44.28%) also belong to the respondents having income above Rs.25,000. 38.09 per cent of the respondents from O4 category belong to income group of Rs.20000 to Rs.25,000. 47.56 per cent respondents from O1 category and 27.77 per cent from O5 category are having income below Rs.10,000.Further 36.99 per cent respondents from O2 category are having income of Rs.10,000 to Rs. 15,000. However, all the respondents from O4 category having income of Rs.10,000 to Rs.15,000(9.52%), Rs.20,000 to Rs.25,000(38.09%) and above Rs.25000 (52.38%). Table 5.13 Education/ Occupation Wise Distribution of Customers Occupational Categories
Education
O1 O2 O3 O4 Total O5

E1 E2 E3 E4 E5 N

5 (6.09) 40 (48.78) 24 (29.26) 6 (7.31) 7 (8.53) 82

0 (0.00) 28 (16.18) 61 (35.26) 56 (32.36) 28 (16.18) 173

0 (0.00) 2 (2.85) 13 (18.57) 31 (44.28) 24 (34.28) 70

0 (0.00) 0 (0.00) 2 (9.52) 13 (61.90) 6 (28.57) 21

2 (3.70) 5 (9.25) 6 (11.11) 25 (46.25) 16 (29.62) 54

7 (1.75) 75 (18.75) 106 (26.5) 131 (32.75) 81 (20.25) 400

Occupation wise table 5.13 reveals that 48.78 per cent businessmen are matric and under-graduate. 35.26 per cent of bank customers from O2 category are graduate. In the same category of serviceman that is O2; 32.36 per cent of the respondents are having post graduate degree comes under the category of E4. 34.28 per cent of respondents from O3 category having professional degree are having professional qualification also. However, only 6.09 per cent respondents of O1 category and 3.70 per cent of O5 category comes under the category of E1 with only matric qualification.

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Table 5.14 Sex/ Education Wise Distribution of Respondents Educational Categories Sex Male Female N
Total E1 E2 E3 E4 E5

5 (71.42) 2 (28.57) 7

59 (78.66) 16 (21.33) 75

71 (66.98) 35 (33.01) 106

83 (63.35) 48 (36.64) 131

68 (83.95) 13 (16.04) 81

286 (71.5) 114 (28.5) 400

Table 5.14 reveals that in total 71.5 per cent respondents are males and 28.5 per cent are females. However, proportion of male respondents are high in E5 (83.95%) and E2 (78.66%) category. In females, the large proportion consist of E4 (36.64%) followed by E3 (33.01%). Table 5.15 Sex/ Occupation Wise Distribution of Customers Occupation Categories Sex Male Female
N

O1 66 (80.48) 16 (19.51) 82

O2 115 (66.47) 58 (33.52) 173

O3 46 (65.71) 24 (34.28) 70

O4 21 (100) 0 (0.00) 21

O5 38 (70.37) 16 (29.62) 54

Total 286 (71.5) 114 (28.5) 400

Occupation wise, table 5.15 reveals that 80.48 per cent of male belongs to business category, whereas all the agriculturist are male respondents. In the female category, the major proportion was those who either belong to a service category or to a professional category. 5.7 Respondents Opinion Regarding Different Electronic Banking Services There are varieties of services offered by the banks through electronic banking. Therefore ranking was done to judge the opinion of respondents regarding different e-banking services.

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Table 5.16 Reasons for Adoption of E-banking (N=400)

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Rank10 WAS Overall Ranking

Reasons for adoption

Detail Information 95 30 18 61 10 8 18 51 33 40 45 19 20 9 42 30 27 8 10 42 27 25 33 35 12 58 39 50 49 74 47 42 24 18 29 56 66 66 59 23 28 42 76 53 52 33 37 33 85 41 49 40 40 38 47 85 44 53 41 30 41 56 90 10 30 46 44 44 33 34 21 14 57 28 24 18 39 38 58 93 34

76

84

51

23

28

20

32

30

48 12 37 11 14 20 39 30 56 127

6.58 6.61 5.51 5.56 6.03 5.14 4.95 4.77 4.87 4.46

2 1 5 4 3 6 7 9 8 10

Convenience

Risk

Cost

Fastest Mode

Funds Movement

Internet Access

Improved Service

Anytime Banking

Easy

Table 5.16 exhibits that there is a wide divergence of customers opinion regarding e-banking services. Weighted average score was calculated

for ranking of services. It shows that e-banking provides convenient ways to manage services and finance(6.61) followed by detailed information

in seconds(6.58), fastest mode of services (6.03), bring down the cost of banking(5.56), less risk and greater security(5.51), quick movement of

funds (5.14), fastest internet access speed(4.95),anywhere, anytime banking (4.87), reduced wasting cost, increased flexibility and improved

service (4.77) and easy to transact from office , house or while traveling(4.46). It can be observed that bank customer found it suitable to transact

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through electronic banking. Therefore improved services, easy to transact from anywhere and anytime are the main reasons due to which e-

banking is adopted by the customers. Table 5.17 Benefits Availed Through E-banking
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Rank10 WAS Overall Ranking

E-banking Services

Withdrawal 32 30 24 24 23 10 4 15 13 42 14 15 24 31 20 11 5 27 38 16 29 22 29 8 6 13 53 29 57 35 51 32 58 88 50 77 81 23 37 19 38 63 62 80 57 26 80 68 84 37 30 18 28 29 87 82 63 38 71 61 80 42 42 3 30 79 60 54 45 24 28 18 28 33 12 13 17 30 74

216

64

31

17

26

15

17 32 8 21 16 17 38 27

8.49 6.33 6.56 6.24 5.70 5.75 4.38 4.32

1 3 2 4 6 5 7 8

Opening of Accounts

Checking of Balance

Transfer of Funds

Online Information

Bill Payment

Loan Rates

E-shopping

Import-Export

145 36

58 173

3.67 3.54

9 10

Downloading of Forms

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able 5.17 shows that all electronic banking services are not equally important for the customers, some services are very important while some are less important. The findings shows that cash withdrawal (8.49), Checking of account balance (6.56), Opening of account through online internet (6.33), transfer of funds (6.24), bill payment (5.75) and online information (5.70) are the important advantages availed through e-banking. Among the least important services are loan rates (4.38), e-shopping (4.32), importexport trade documents (3.67) and downloading of various forms (3.54) are the less important services for the customers. So the findings indicated that cash withdrawal through onsite and offsite ATMs, anywhere, anytime banking, checking of account balance through phone and mobile banking are the major benefits creeped by e-banking for the customers. Section-III 5.7 Exploring the Relationship Between Service Quality and E-banking This section deals with various dimensions of service quality studied to know electronic banking impact on service quality. Various statistical tools are applied for the said purpose like mean, standard deviation, factor analysis and t-test. Various dimensions of service quality helps to clarify as to which particular factors or variables of electronic banking has increased the level of service quality for the customers. Mean Scores and Standard Deviation Table 5.18 reveals the mean and standard deviation for the individual factors of electronic banking to measure the service quality, customer satisfaction and their response towards the different dimensions. Amongst the various dimensions, the highest score was found for transfer of fund is faster as compared to manual banking (competence dimension) followed by the representation of service through plastic card, credit card and debit card (tangible dimension) and same mean score for transfer of fund through e-banking is easier(competence) and than by bank use advanced computer/ IT to serve clients. Three of the four variables of responsiveness were also ranked highest. The scores in all the dimension of communication are also high. The lowest score was to be found regarding ability to fulfill the requirement in credibility dimension. The standard deviation is also low and high according to the respective mean scores.

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Table 5.18 Mean Scores and Standard Deviation for Individual Features of Quality, Customer Satisfaction and Behavioural Response Statements 1. Banks use advanced Computer/IT to serve clients. 2. E-banking provides modern looking equipment. 3. Physical representation of service through plastic card, credit and debit card is easy. 4. E-banking provides 24 hours, 365 days a year service to customers. 5. It helps in reducing the no. of queues in the bank branches. 6. E-banking provides more physical facilities to the customers. 7. It provides individualized attention to the customers. 8. It provides necessary information to the customers. 9. Website of the bank is designed according to the need of the customer. 10. It ensures to provide necessary information to the customer. 11. E-banking learns the specific requirement of the customer. 12. E-banking ensures physical safety of the transaction. 13. It is trusted by young generation. 14. Password facility provides confidentiality to transaction. 15. It also increases the financial security. 16. Privacy can be easily maintained. 17. E-Banking explains the service itself. 18. It explains the cost of service being used. 19. It assures the customer that problem will be handled. 20. It explains the trade off between service and cost. 21. E-banking provides up to date information. 22. It also provides sophisticated information for well educated customers. 23. Transfer of fund is easier through E-banking. 24. E-Banking provides more punctuality, transparency, accountability. 25. Transfer of funds is faster as compared to manual banking system. 137 Dimension Tangibility Tangibility Tangibility Tangibility Tangibility Tangibility Understanding Understanding Understanding Understanding Understanding Security Competence Security Security Security Communication Communication Communication Communication Communication Communication Competence Competence Competence Mean 4.00 3.92 4.02 3.99 3.83 3.73 3.66 3.78 3.80 3.80 3.63 3.67 3.86 3.82 3.84 3.70 3.78 3.72 3.74 3.77 3.77 3.83 4.02 3.77 4.06 S.D. 0.86 0.86 0.86 0.96 0.92 0.89 0.91 0.87 0.91 0.88 0.95 1.02 0.87 1.04 0.90 1.02 1.03 0.85 0.72 0.77 0.98 0.80 0.84 0.94 0.88

26. It provides accuracy in billing. 27. It helps in keeping records correctly. 28. It performs the service at designated time. 29. E-banking is very necessary for the development of new economy of India. 30. It improves the quality of customer service. 31. Response of service through e-banking is very prompt and quick. 32. E-Banking service is accessible via Internet banking, mobile banking, EFT, ECS, ATM. 33. Online purchase of goods and services including online payment is easier. 34. Availability of service is faster in e- banking as compare to manual banking. 35. It provides convenient location of service facility (location of ATM, POS terminals). 36. It reduces the waiting time to receive the service. 37. E-banking increases the reputation of the banks 38. It increases the believability, honesty and trustworthiness of the customers in banks. 39. It ensures the ability to fulfill the requirement 40. Degree of reliability involved in Interaction with customer is more in e- banking. 41. It helps in better customer relationship, attracting and retaining them. 42. E-banking provides effective medium of promotion of various schemes. 43. It provides unlimited network to the banks to approach customers.

Reliability Reliability Reliability Responsiveness Responsiveness Responsiveness Access Access Responsiveness Access Access Credibility Credibility Credibility Credibility Understanding Communication Credibility

3.75 3.86 3.69 3.97 3.90 3.71 3.85 3.94 3.94 3.93 3.87 3.83 3.82 3.02 3.73 3.63 3.87 3.75

0.96 0.89 0.90 0.95 1.02 0.98 0.95 0.97 0.99 0.98 0.88 1.02 0.89 1.14 0.88 1.02 0.76 0.80

5.7.1 Service Quality Level of Banks Using SERVQUAL Model For the measurement of impact of e-banking on service quality, SERVQUAL model developed by Parasuraman et,al.(1985) has been used. The data collected through the questionnaire was analyzed by using factor analysis and other statistical techniques. The first stage was to determine whether the nine dimensions could be viewed as appropriate indicators of banking industry. The second stage was to assess the variables underlying the various dimensions. Accordingly, 43 variables were developed to assess the nine dimensions. This stage tests these variables as well as their relevance in conceptualizing service quality. The 43 service quality variables were factor analyzed to determine whether there exists underlying dimensions of service quality. The objective of the analysis was to summarize the information contained in the original 43 variables in to smaller sets of

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newly correlated composite dimension or factors. Only variables with factor loading of 0.40 (Hatcher, 1994) were considered important for further analysis and data reduction and other were excluded. Cronbach alpha and Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy and Bartletts test of sphercity was used to measure the reliability of data. If the value of KMO and Cronbach alpha in any variable is greater than 0.50 than the data will be regarded as reliable for research. The factors with eigen value equal to or greater than one were considered significant and chosen for interpretation. In order to conduct factor analysis on 43 variables of service quality, the various sub dimensions has been divided into 9 main dimensions namely Access, Communication. Credibility, Competence, Reliability, Responsiveness, Security, Understanding, Tangibility. Each dimension consists of 4-5 sub dimensions. But all these dimensions are not equally important for measuring the service quality in banking industry. So, factor analysis was used to extract those factors having eighen value greater than 1. To study the impact of e-banking on service quality and to identify the important factors for the customers to choose e-banking, Two assumptions have been framed. To know the impact of e-banking on the level of customer satisfaction, all factors are equally important. There is no correlation among the different factors to judge the level of customer satisfaction. Table 5.19 Measuring the Reliability of Data Variables Access Communication Competence Credibility Reliability Responsiveness Security Tangibility Understanding Kaiser-MeyerOlkin Measure(KMO) 0.507 0.520 0.663 0.591 0.581 0.666 0.666 0.742 0.797 Bartletts Test of Sphericity (Approx.Chi-square) 179.659 171.384 206.790 205.889 74.399 275.346 154.181 332.709 211.037 d.f. 6 21 6 10 3 6 6 15 15 Significance Level 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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In order to know the various factors considered important for the customers, two tests were conducted under the factor analysis to judge the reliability of data, i.e., KaiserMeyer-Olkin measure of sampling adequacy and Bartlett test of sphericity. The results so obtained were subjected to both these tests. The value of KMO statistics in all the factors is >0.5. Hence, all the factors are not considered equally important for measuring the service quality of e-banking. Therefore, null hypothesis is rejected. Bartletts test of sphericity shows the value of Chi-square which is significant at 0.000 levels in all the dimensions of service quality. These two tests show that the data is fit for conducting the factor analysis. 5.9.1 Identification of Nine Service Quality Factors Principal Component Analysis with Varimax Rotation method was employed for extracting the factors. All the variables with their factor loadings and percentage of variance explained by each factor are given in the following tables used on forty-three items of service quality. Principal Component Factor Analysis with Varimax Rotation, Percentage of Variance Explained and factor Loadings Nine factors have been extracted with the help of different dimensions of service quality. The percentage of variance explained by the factors individually varies from 38.915 to 58.579 and the communalities vary from 0.460 to 0.778. All the factors have been given appropriate names on the basis of various variables present in each case. The structure of these nine factors is discussed below Factor 1 Access Table 5.20 Analysis of Customers Perceptions Regarding Access Dimension S. No. 1. 2. 3. 4. Variable E-banking service is accessible via Internet banking, mobile banking, EFT, ECS, ATM. Online purchase of goods and services including online payment is easier. It provides convenient location of service facility (location of ATM, POS terminals) It reduces the waiting time to receive the service. Cronbach Alpha Eigen value Percentage of variance(sum of square loadings) 140 Factor Loading 0.467 0.676 0.794 0.659 0.556 1.740 43.491

Different dimensions of Access under e-banking were studied and four factors have been loaded on this factor. The factor loadings of all the statements were calculated and it has been found that the loading of all the statements is greater than 0.4, thus, all the statements will be accepted. The Eigen value and Cronbach alpha for this factor are 1.740 and 0.556 respectively. The Eigen value of the factor was greater than one and indicates that it fits well with the data from all the respondents on all the statements. The analysis shows that Eigen value explains 43.49 per cent of the variance from all the respondents and there is only one factor extracted having the factor loading closer to 1. This shows that customers do not agree that e-banking is easily accessible through mobile, ATM, internet banking, EFT and ECS. Convenience is having high factor loading which is 0.79 and as such this factor is extracted and retained. It implies that ebanking provides convenient location of service by installing the onsite and offsite ATMs and point of sale terminals . Factor 2 Communication

Table 5.21 Analysis of Customers Perceptions Regarding Communication Dimension

S. No. 1. 2. 3. 4. 5. 6. 7

Factor Loading E-banking explains the service itself. 0.496 It explains the cost of service being used. 0.676 It assures the customer that problem will be handled. 0.633 It explains the trade off between service and cost. 0.519 E-banking provides up to date information. 0.520 It also provides sophisticated information for well 0.698 educated customers. E-banking provides effective medium of promotion of 0.695 various schemes Eigen value Cronbach Alpha Percentage of variance(sum of square loadings) 1.57,1.34 1.22 0.780 59.077

Variable

Eigen Value 1.57 1.34 1.22

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Table 5.22 Rotated Component Matrix of Communication Dimension

Explanation Cost Handling Tradeoff Update Sophisticated Effectiveness

Factor 1 0.205 -0.381 0.314 0.658 -0.041 0.818 -0.043

Factor 2 0.463 0.727 0.731 0.262 -0.137 -0.137 0.097

Factor 3 0.49 -0.025 -0.008 -0.135 0.707 0.096 0.764

Table 5.21 shows communication factor that consisted of seven variables. The factor loadings of all the statements were calculated and it was found that the loadings of all the statements were greater than 0.4, and thus, all were accepted. The values of Cronbach alpha and Eigen value so obtained suggest a good consistency of the data. The analysis shows that the Eigen value represents 59 per cent of the variance of data. In the three variables, Eigen values are having value greater than 1 which shows that the factor extracted would be equivalent to three. Rotated component matrix with Kaiser Normalization helped in data reduction. The matrix explains that the factors extracted are the combination of how many variables. The principal component analysis under the rotation converged into three iterations. The following three components have been extracted. Component 1: Sophisticated Component 2: Cost, Handling Component 3: Update, effectiveness. Table 5.22 shows the factor that represents the combination of variables under communication dimension. In the first extraction of factor loading, sophisticated is having highest loading i.e., 0.818 which implies that electronic banking provides sophisticated information to well educated customers. People perceive that service of electronic banking is more useful and valuable for educating community as large proportion of people are involved in service sector having their own PC, laptop and computer. So, they can get any sort of information regarding their account balance, transfer of funds, clearing services, mobile recharging, etc. and they can get any sort of information well in time through internet banking with the help of transactional and

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informational websites of banks. It brings out that the benefit of E-banking is mainly enjoyed by educated customers only In the second Matrix, two factors are having value closer to 1, namely, cost and handling, with 0.727 and 0.731 respectively. As e-banking explains the cost of service as well as assurance to the customer that the problem will be handled. It means explaining something about the service as well as giving assurance to customer as a feedback means e-banking services are informative and helpful in data handling and cost reduction. Update and effectiveness dimension is having high loading in the interpretation of third factor. It implies that e-banking provides latest and effective information to the customers. Factor 3 Competence

Table 5.23 Analysis of Customers Perceptions Regarding Competence Dimension

S. No. Variable Factor Loading 1. Transfer of fund is easier through E-banking. .418 2. E-banking provides more punctuality, transparency, .745 accountability. 3 Transfer of funds is faster as compared to manual banking .776 system. 4. It is trusted by young generation. .750 Eigen value 1.896 Cronbach alpha .614 % of variance(sum of square loadings) 47.393 Table 5.23 reveals that competence factor consisted of four variables and each of these variables was analyzed using factor analysis. The analysis shows that the Eigen value represents 47.39 percentage of the variance of data. There are three variables having value closer to 1 and above 0.7. The variables extracted were Easy, Trusted and Punctuality. These three factors explained that the transfer of funds due to RTGS, ECS and EFT is easier and services provided through e-banking are adequate, accountable, faster and transparent.

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Factor 4 Credibility Table 5.24 Analysis of Customers Perceptions Regarding Credibility Dimension S. No. 1. 2. 3. 4. 5. Variable Factor Loading E-banking increases the reputation of the banks. 0.713 It increases the believability, honesty and trustworthiness of 0.699 the customers in banks. It ensures the ability to fulfill the requirement. 0.701 Degree of reliability involved in interaction with customer 0.471 is more in E- banking. It provides unlimited network to the banks to approach 0.346 customers Cronbach Alpha 0.787 Eigen value 1.684, 1.254 Percentage of variance(sum of square loadings) 58.759 Table 5.25 Rotated Component Matrix of Credibility Dimension Factor 1 0.772 0.823 -0.151 0.582 0.205 Factor 2 -0.343 0.147 0.828 0.364 0.552

Reputation Trustworthy Ability Reliability Network

The credibility factor consisted of four variables. In this factor two variables have Eigen values greater than 1 and as such two factors will be extracted with rotated component matrix and Kaiser Normalization. These are: Component 1: Reputation, trustworthy Component 2: Ability In the first extraction, the variables named reputation and trustworthy are having high loading closer to 1. It can be inferred that e-banking services increase the honesty, reputation and trustworthiness of the banks by providing on time and desirable services. In the next category, there is only one factor having a loading of 0.828. The factor so called is ability as e-banking enhances the ability to fulfil the requirement of the customer that was earlier not possible by brick and mortar banking.

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Factor 5 Reliability Table 5.26 Analysis of Customers Perceptions Regarding Reliability Dimension S. No. 1. 2. 3 Variable It provides accuracy in billing. It helps in keeping records correctly. It performs the service at designated time. Cronbach Alpha Eigen value Percentage of variance(sum of square loadings) Factor Loading 0.776 0.722 0.615 0.699 1.502 50.061

The reliability factor consisted of three variables and each of these variables was analyzed using factor analysis. The factor loading of all the statements was calculated and it was found that the loadings of all the statements were greater than 0.4, and thus, all were accepted. The Cronbach alpha and Eigen values are 0.699 and 1.502 respectively which suggest a good consistency of the data. Only one factor having Eigen value greater than 1 explained 50.61 per cent of the data. Hence, only one component is extracted. Component: Accuracy, Correctness The component is a combination of two variables that is accuracy and correctness. As e-billing is more accurate than paper billing and records are kept correctly in online banking and can be retained for the longer period. Factor 6 Responsiveness Table 5.27 Analysis of Customers Perceptions Regarding Responsibility Dimension S.No. 1. 2. 3. 4. Variable E-banking is very necessary for the development of new economy of India. It improves the quality of customer service. Response of service through e-banking is very prompt and quick. Availability of service is faster in e-banking as compared to manual banking. Cronbach Alpha Eigen value Percentage of variance(sum of square loadings) Factor Loading 0.714 0.724 0.798 0.617 0.679 2.051 51.281

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Table 5.27 shows the statements under responsiveness dimension. The responsiveness factor consisted of four variables and each of these variables were analyzed using factor analysis. The factor loadings of all the statements were calculated and it was found that the loadings of all the statements were greater than 0.4, and thus, all were accepted. The Cronbach alpha and Eigen value are 0.679 and 2.051 respectively which suggest a good consistency of the data. Their is only one Eigen value explaining 51.28 per cent of the data. The component matrix shows four variables and all the variables having value greater than 0.4. Hence, no factor can be rejected but three factors having loading greater than 0.7 and as such the following factors will be combined. Component: Development, quality, quickness These three out of four factors represent that e-banking is required for the development of economy, improve the quality of service, and bring quickness in response. This shows that e-banking is a major factor for the growth and expansion of banking sector and the economy as a whole by reduction of wastage and less paper involvement in electronic transactions. Factor 7 Security Table 5.28 Analysis of Customers Perceptions Regarding Security Dimension S. No. 1. 2. 3. 4. Variable E-banking ensures physical safety of the transaction. Password facility provides confidentiality to transaction. It also increases the financial security. Privacy can be easily maintained. Cronbach Alpha Eigen value Percentage of variance(sum of square loadings) Factor Loading 0.582 0.752 0.687 0.660 0.691 1.811 45.271

Table 5.28 shows security dimension that consisted of four variables. The value of Cronbach alpha and Eigen values are 0.691 and 1.811 respectively, which suggest a good consistency of the data. Only one factor having Eigen value greater than 1 explained 45.271 per cent of the data. One factor confidence having loading of 0.752 shows that people are highly satisfied with e-banking because the technology of banking is mainly operated through password, be it internet banking or ATM processing. Password facility provides confidentiality to all the transactions. So, much influence in security issue is of password

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facility which provides immense help to the customers in maintaining secrecy of their money as well as transactions. Factor 8 Tangibility Table 5.29 Analysis of Customers Perceptions Regarding Tangibility Dimension S. No. 1. 2. 3. 4. 5. 6. Variable Factor Loading Banks use advanced Computers/IT to serve clients. 0.648 E-banking provides modern looking equipment. 0.749 Physical representation of service through plastic card, 0.467 credit and debit card is easy. E-banking provides 24 hours, 365 days a year service to 0.706 customers. It helps in reducing the no. of queues in the bank branches. 0.555 E-banking provides more physical facilities to the 0.572 customers. Cronbach Alpha 0.678 Eigen value 2.335 Percentage of variance (sum of square loadings) 38.915 The tangibility factor consisted of six variables. The value of Cronbach alpha and Eigen values are 0.678 and 2.335 respectively explaining 38.915 per cent of the data. Only one factor having Eigen value greater than 1 explained 38.91 per cent of the data. All the six variables have factor loadings greater than 0.4 but only those factors will be extracted those which have loading greater than 0.7. So, with help of component matrix, two variables are extracted. Component: Modern equipment, Hours Installation of new machines, change in the infrastructure of banks in a modernized way has only been possible due to e-banking. Secondly e-banking provides 24 hours access to the banking facility. The concept of branch banking is also abolishing due to e-banking

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Factor 9 Understanding Table 5.30 Analysis of Customers Perceptions Regarding Understanding Dimension S. No. 1. 2. 3. 4. 5. 6. Variable Factor Loading It provides individualized attention to the customers. 0.454 It provides necessary information to the customers. 0.478 Website of the bank is designed according to the need of the 0.502 customer. It ensures to provide necessary information to the customer. 0.515 E-banking learns the specific requirement of the customer. 0.372 It helps in better customer relationship, attracting and 0.730 retaining them Cronbach Alpha 0.808 Eigen Value 1.995,1.057 Percentage of variance (sum of square loadings) 50.862 Table 5.31 Rotated Component Matrix of Understanding Dimension Factor 1 0.664 0.609 0.693 0.718 0.411 0.062 Factor 2 -0.115 0.327 -0.149 -0.009 -0.451 0.852

Attention Information Need Assure Requirement Relations

The understanding factor consisted of six variables. The values of Cronbach alpha and Eigen value are 0.808 and 2.335 respectively. There is only one factor having Eigen value greater than 1 explaining 50.862 per cent of the data. Courtesy is one of the main dimensions. But due to having only one sub-dimension it is added in the understanding dimension. Out of the six factors, two Eigen values are having value greater than 1, hence, rotated component matrix is having two iterations and the factors extracted are as follows: Component 1- Need, Assure Component 2- Relations Table 5.31 reveals rotated component matrix. In the first matrix, we are having two factors with high loadings that is need with 0.693 and assurance with 0.718. It shows that e-banking suits the need of the customers and assures to provide the required information in time. In the second matrix, only one factor is having high loading that is 148

0.852 in relations. In the next matrix, the factor extracted is only one that is Relations because e-banking helps in improving, attracting and retaining more customers. 5.8 Level of E-banking Services Offered by Different Banks E-banking services are offered by public and private sector banks at different levels. Table 5.32 to 5.36 reveals the satisfaction level of respondents, awareness about new products and services, operational problems in the existing e-banking services. Table 5.32 Satisfaction Level of Customers Regarding E-banking Services
E-banking Services Extremely Poor Poor Average Good Very Good Weighted Average Score Rank

Internet banking services Mobile banking services Phone Banking services Home banking services ATM facility Credit card Facility Debit card facility Electronic fund transfer Bill Payment service Inter-Connectivity of ATMs Request Facility Information of New Products and Services.

17 11 8 33 25 20 9 6 32 3 8 23

19 54 57 47 19 16 23 55 30 53 22 29

88 166 178 148 96 124 92 99 131 141 88 141

200 119 108 122 123 164 185 156 156 139 176 152

76 50 49 50 137 76 91 84 51 64 106 55

3.74 3.35 3.33 3.27 3.82 3.65 3.81 3.64 3.41 3.52 3.87 3.46

4 10 11 12 2 5 3 6 9 7 1 8

Table 5.32 mentions the level of E-banking services offered by different banks. The various e-banking services include Internet banking, Mobile banking, Phone banking, Home banking, ATM, Credit cards, Debit cards, Electronic Fund Transfer, Bill Payment etc. Regarding different services customer are having different opinions. Weighted average scores are calculated for all the services. Majority of the respondents are satisfied with the request facility (3.87) which means the customer can easily ask for any sort of information and can request for pass book, account information, balance enquiry etc. through e-banking followed by ATM facility (3.82), debit card facility (3.81), Internet banking services (3.74), credit card facility (3.65), Electronic fund

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transfer(3.64), Inter-connectivity of ATMs (3.52), Information of new products and services (3.46), bill payment service(3.41), mobile banking services (3.35), phone banking services (3.33), home banking services (3.27). The respondents level of satisfaction shows that banks up to some extent are satisfying the requirement of the customers and fulfilling their diverse needs. Table 5.33 Awareness Among Customers About New Products And Services Advertisement Manager Website E-mail Other Customers Mobile Banking Total Frequency 129 67 67 51 63 23 400 Percent 32.2 16.7 16.7 12.7 15.7 5.7 99.8 Valid Percent 32.3 16.8 16.8 12.8 15.8 5.8 100.0 Cumulative Percent 32.3 49.0 65.8 78.5 94.3 100.0

Table 5.33 shows the awareness about the banking products and services in the customers. The majority of the respondents (32.2%) aware about e-banking products and services from the advertisement in the newspapers, 16.8 per cent from their respective managers and websites of the banks respectively, 15.7 per cent from the other customers, 12.7 per cent from e-mail and 5.7 per cent from the mobile banking. So the mode of awareness could be any as the customer of todays world is competent and aware about the usage of e-banking through different modes of communication. Table 5.34 Operational Problems in the Use of Modern Technology Nature of Problem Server down Untrained Personnel Non Working of ATM Deposit of Cash Ignorance of People Low Response of Phone Calls Onsite and Offsite Location of ATM Availability of Currency Risk of Loss of Currency Delay in Services Total Frequency 31 35 75 49 37 34 44 50 31 14 400 Percent 7.7 8.7 18.7 12.2 9.2 8.5 11.0 12.5 7.7 3.5 99.8 Valid Percent 7.8 8.8 18.8 12.3 9.3 8.5 11.0 12.5 7.8 3.5 100.0 Cumulative Percent 7.8 16.5 35.3 47.5 56.8 65.3 76.3 88.8 96.5 100.0

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Table 5.34 encounters the nature of problem being faced by the respondents with the usage of e-banking. The major problem arising in this is regarding the ATMs. 18.7 per cent respondents says that the ATMs of the bank does not either work properly or having the shortage of cash in it. Further the respondents agree that in ATM also the problem of queue is not solved, people still have to stand in queue to use their ATMs and the reason may be some time technical difficulties or slow working of the machines.12.5 per cent respondent says that availability of currency might be in the bank premises or in the ATMs causes problem to them. For online deposit also, the customers have to wait for long time in bank despite of electronic fund transfer system. Thirdly comes the problem of depositing the cash that constitute 12.2 per cent of the total problems. Customers can withdraw fast cash from ATM but to deposit the money they still have to rely on bank employees. Fourthly 11 per cent respondents agree that locations of ATMs are not adequate. Even if a large number of ATMs are being installed still the customers have to move far off places from their home and offices for the withdrawal of money. In rural areas number of ATMs are very less. Further 9.2 per cent respondents encounter problem due to their ignorance regarding the use of new technological methods as their are no training and orientation programs organized for the customers to train and inform them about the usage of e-banking products. 8.7 per cent perceive that they are facing some problems due to untrained personnel in the organization, 8.5 per cent of the respondents perceive that they face the problems because of non attending of the phone calls by the bank employees. 7.7 per cent are facing the problem due to server down and 3.5 per cent due to delay in services. Table 5.35 Problems in E-banking Services Yes No Total Frequency 235 165 400 Percent 58.6 41.1 99.8 Valid Percent 58.8 41.3 100.0 Cumulative Percent 58.8 100.0

The methods and techniques used in e-banking are quite different from traditional banking. In the list of services mentioned above, 58.6 per cent respondents agree that they encounter problems in e-banking services and 41.1 per cent admitted that they have adjusted their requirements according to any problem.

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Table 5.36 Filing of Complaint

Frequency Yes No Total 158 242 400

Percent 39.4 60.3 99.8

Valid Percent 39.5 60.5 100.0

Cumulative Percent 39.5 100.0

Table 5.36 reveals whether the respondents lodged complaint to the banks or not regarding their problem. Majority (60.3%) of the respondents formed an opinion that although they have problems in e-banking services yet they dont complaint regarding it to their banks. The reason may be they are not familiar with the way to file the complaint with the bank and 39.4 per cent respondents complaint regarding their problems to the banks. It could be regarding usage of internet banking, mobile banking, ATMs etc. Section-IV 5.11 A Comparison of Customer Satisfaction in Public Sector and Private Sector Banks 5.11.1 Customer Profile This section deals with the results analysed to study the impact of e-banking on level of customer satisfaction across public and private sector banks. The data collected was analyzed according to customer use of banks in private sector and public sector. Table 5.37 shows the sample distribution between the two banking sector as it relates to gender, age, education, occupation, household income. In the sample, 200 respondents each from public and private sector have been selected for the study. Table 5.37 Characteristics of Customers Profile in Public and Private Sector Banks Private Gender Male Female Marital status Married Unmarried Age Below 30 152 164 36 200 119 81 200 119 Public 124 76 200 137 63 200 91

30 But Below 45 45 But Below 60 Above 60 Education Below Matric Matric and Under Graduate Graduate Post Graduate Professional Degree Occupation Businessmen Servicemen Professional Agriculturist Any Other Total Income Below 10000 10000-15000 15000-20000 20000-25000 Above 25000 Length of Account Less than 1yrs 1-3 yrs 3-5yrs 5-7 yrs Above 7 Type of Account Saving Current Salary

51 22 8 200 4 26 58 70 42 200 42 87 40 16 15 200 40 44 34 29 53 200 42 67 38 22 31 200 162 23 15 200

58 38 13 200 2 49 48 60 41 200 40 86 28 5 41 200 27 35 39 35 64 200 17 33 24 37 89 200 146 42 12 200

5.11.2 Comparative Service Quality Analysis of Public and Private Sector Banks Using SERVQUAL Model The research examined the comparative analysis of services between public and private sector banks. The dimension of SERVQUAL is divided into nine parts comprising access, communication, competence, credibility, responsiveness, reliability,

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security, tangibility and understanding. T-test was applied to calculate the mean differences between public and private sector banks. Factor 1 Access Table 5.38 Sector-wise Analysis of Customers Perception Regarding Access Dimension Statements E-banking service is accessible via Internet banking, Mobile banking, EFT, ECS, ATM. Online purchase of goods and services including online payment is easier. It provides convenient location of service facility(location of ATM, POS terminals) It reduces the waiting time to receive the service. ** p-value is significant at 0.05 level. Table 5.38 shows the statistical difference of access dimension in public and private sector banks. In the access dimension, there is a significant gap in two services while in other two there is no such difference. In case of online purchase of goods and services, private sector is having 4.01 mean score and public sector with 3.87 where the p-value is significant at 5 per cent level. This shows both public and private sector customers agree but private sector seem to be higher beneficiary of online services of their respective banks. Other statistical difference is in the reduction of waiting time to receive the service. Here public (4.02) and private (3.72) sector services are different and public sector banks are helpful in reduction of waiting time to receive the services. This difference could be due to better time management, efficient employees and installation of more number of ATMs. Whereas in case of internet, mobile, ECS, EFT services there is no such significant difference found. Public 3.91 Private 3.78 t-value 1.374 p-value 0.170

3.87

4.01

-1.452

0.002**

3.93

3.93

0.000

0.500

4.02

3.72

3.409

0.000**

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Factor 2 Communication Table 5.39 Sector-wise Analysis of Customers Perception Regarding Communication Dimension Statements E-banking explains the service itself. It explains the cost of service being used. It assures the customer that problem will be handled. It explains the trade between service and cost. off Public Private 3.87 3.68 3.61 3.61 3.70 3.63 3.79 3.83 3.86 3.84 3.91 3.87 t-value 1.856 2.618 3.524 1.819 2.880 1.006 p-value 0.064 0.995 0.000** 0.069 0.998 0.842

E-banking provides up to date information. It also provides sophisticated information for well educated customers E-banking provides effective medium of promotion of various schemes ** p-value is significant at 0.05 level.

3.60

3.90

-3.811

0.000**

The communication dimension shows that customer perception in public and private is almost same in all statements except in two statements with mean score of 3.61 and 3.60 and 3.86 & 3.90 respectively. As e-banking assures that customer problem can be handled but private sector customers are more agreed upon it. Second statistical difference is significant in e-banking as effective medium of promotion of various schemes. This shows that websites of private sector banks are more customer friendly where they can come to know about the various schemes launched by the banks. In both these areas public sector do need to have improvement.

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Factor 3 Competence Table 5.40 Sector-wise Analysis of Customers Perception Regarding Competence Dimension Statements Public It is trusted by young generation. 3.92 Transfer of fund is easier through E4.02 banking. E-banking provides more punctuality, 3.78 transparency, accountability. Transfer of funds is faster as compared 4.03 to manual banking system. ** p-value is significant at 0.05 level. Private 3.81 4.02 3.77 4.09 t-value 1.255 0.000 0.107 -0.680 p-value 0.210 1.000 0.915 0.497

Regarding the competence dimension, both the sectors are giving the same service in this regard. Both the sectors services are trusted by the young generation, no hindrance in transfer of fund. In both the sectors the e-banking services are more punctual, transparent and accountable. Although there is no statistical difference found in two sectors but public sector (3.92) is more trusted by the young generation than private sector (3.81). As far as the transfer of funds are concerned private sector banks (4.09) are offering it a better way than the public sector banks (4.03). Factor 4 Credibility Table 5.41 Sector-wise Analysis of Customers Perception Regarding Credibility Dimension Statements Public E-banking increases the reputation of 3.87 the banks It increases the believability, honesty 3.73 and trustworthiness of the customers in banks. It ensures the ability to fulfill the 2.26 requirement Degree of reliability involved in 3.60 interaction with customer is more in ebanking. It provides unlimited network to the 3.60 banks to approach customers ** p-value is significant at 0.05 level Private 3.79 3.92 3.77 3.87 3.90 t-value 0.783 -2.138 -17.679 -3.086 -3.811 p-value 0.434 0.003**

0.000** 0.002**

0.000**

Table 5.41 shows the comparison of difference between the public and private sector in the credibility dimension. The results indicated the gap between two sectors in four out of five statements representing trustworthiness, ability to fulfill the 156

requirement, degree of reliability and unlimited network approach for customers. All the four statements are significant at 5 % level of significance and the mean score of private sector customers is high in all statements. Customers are disagreeing with public sector banks on the ground that their all requirements are fulfilled with the low mean score. Factor 5 Reliability Table 5.42 Sector-wise Analysis of Customers Perception Regarding Reliability Dimension Statements It provides accuracy in billing. It helps in keeping records correctly. It performs the service at designated time. ** p-value is significant at 0.05 level Table 5.42 reveals that there is no statistical difference between two sectors. The dimension comprises of accuracy in billing, keeping online records and performing the services at designated time with mean score of 3.80, 3.88 and 3.62 in private sector respectively and 3.71, 3.85 and 3.75 in public sector. It is observed that if public sector banks intend to enhance their service quality than they must improve the service quality in those dimensions where the score is either too low than private sector or customers are not satisfied with the services being provided. Factor 6 Responsiveness Table 5.43 Sector-wise Analysis of Customers Perception Regarding Responsiveness Dimension Statements Public Private t-value p-value E-banking is very necessary for the 4.02 3.92 1.048 0.295 development of new economy of India. It improves the quality of customer 4.03 3.76 2.666 0.008** service. Response of service through e-banking 3.71 3.71 0.000 1.000 is very prompt and quick. Availability of service is faster in e3.76 4.12 -3.686 0.000** banking as compare to manual banking. ** p-value is significant at 0.05 level Public 3.71 3.85 3.75 Private 3.80 3.88 3.62 t-value 0.937 -0.334 1.432 p-value 0.349 0.738 0.152

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The results in responsiveness dimension shows significant difference in two out of four statements. Customers in both sectors agree that e-banking is necessary for the development of new economy of India and regarding the service response through ebanking with 4.02 and 3.71 mean score for public sector and 3.92 and 3.71 for private sector. Public sector bank customers are more satisfied with the improvement of quality service with 4.03 mean score and private sector banks customers with the availability of service being faster in e-banking as compared to manual banking with 4.12 mean score. Factor 7 Security Table 5.44 Sector-wise Analysis of Customers Perception Regarding Security Dimension Statements Public E-banking ensures physical safety of 3.71 the transaction. Password facility provides 3.92 confidentiality to transaction. It also increases the financial security. 3.79 Privacy can be easily maintained. 3.69 ** p-value is significant at 0.05 level Private 3.64 3.81 3.86 3.70 t-value 0.683 1.255 -0.674 -0.097 p-value 0.493 0.210 0.250 0.922

As is evident from table 5.44 that both sector banks need to improve their security services for e-banking. Customers wants more confidentiality for their internet and ATM services. Both sector customers are neutral regarding their expectations from their banks and required a further improvement. Factor 8 Tangibility Table 5.45 Sector-wise Analysis of Customers Perception Regarding Tangibility Dimension Statements Banks use advanced Computer/IT to serve clients. E-banking provides modern looking equipment. Physical representation of service through plastic card, credit and debit card is easy. E-banking provides 24 hours, 365 days a year service to customers. It helps in reducing the no. of queues in the bank branches. E-banking provides more physical facilities to the customers. ** p-value is significant at 0.05 level 158 Public Private 4.01 4.06 3.96 4.05 3.90 3.60 4.00 3.79 4.08 3.93 3.77 3.86 t-value 0.116 3.155 -1.391 1.252 1.414 -2.931 p-value 0.907 0.001** 0.082 0.894 0.920 0.001**

As regards the tangibility dimension, the results indicated that in two out of six statements both sector banks are statistically different. These two statements are modern looking equipment and more physical facilities to customers with 4.06 and 3.60 mean score of public and 3.79 and 3.86 of private sector. But public sector banks are providing more modern looking equipment to its customers whereas private sector banks are providing more physical facilities to customers. Other statements comprising of physical representation of service through plastic card, credit and debit card, reduction in the number of queues, e-banking provides 24 hours, 365 days service to customers with mean score of 3.96, 3.90, 4.05 of public sector and 4.08, 3.77 and 3.93 of private sector banks in which out of three, in two services public sector banks are having high mean score.

Factor 9
Understanding Table 5.46 Sector-wise Analysis of Customers Perception Regarding Understanding Dimension Statements Public It provides individualized attention to 3.68 the customers. It provides necessary information to the 3.78 customers. Website of the bank is designed 3.83 according to the need of the customer. It ensures to provide necessary 3.82 information to the customer. E-banking learns the specific 3.68 requirement of the customer. It helps in better customer relationship, 2.35 attracting and retaining them ** p-value is significant at 0.05 level Private 3.64 3.77 3.78 3.78 3.58 3.87 t-value 0.432 0.114 0.544 0.451 1.043 -17.944 p-value 0.666 0.909 0.706 0.652 0.297 0.000**

As far as the understanding dimension is concerned, private sector banks are having low mean score than the public sector customers. For this the bank manager has to ensure that the employees are properly trained so that they provide individualized attention to customers to make e-banking services more to customers friendly and they should also make efforts that customers feel safe and secure with their e-banking transactions with the bank. Further website of the bank should be designed according to the need of the customers. 159

The statistical difference in e-banking quality existed in following statements that related to: Online purchase of goods and services including online payment is easier (p=0.007) It reduces the waiting time to receive the service (p=0.000) It assures the customer that problem will be handled (p=0.000) E-banking provides effective medium of promotion of various schemes It increases the believability, honesty and trustworthiness of the customers in banks (p=0.003) It ensures the ability to fulfill the requirement (p=0.000) Degree of reliability involved in interaction with customer is more in e- banking (p=0.002) It provides unlimited network to the banks to approach customers. (p=0.000) It improves the quality of customer service (p=0.008) Availability of service is faster in e-banking as compare to manual banking. (p=0.000) E-banking provides modern looking equipment (p=0.001) E-banking provides more physical facilities to the customers (p=0.001) It helps in better customer relationship, attracting and retaining them (p=0.000) So there are twelve statements in which there is a difference in the quality of ebanking services in public and private sector banks. 5.11.3 Comparative Analysis of E-banking Services in Public and Private Sector Banks A Comparative analysis of services has been done to examine the level of ebanking services offered in public and private sector banks. The factors taken into consideration provide a wide platform to the banking industry to consider the various factors for the awareness, operational problems and satisfaction level of e-banking services among the respondents in public and private sector banks.

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Table 5.47 Awareness Among Customers About New Products And Services Group 1 Private 70 (35) 27 (13.5) 31 (15.5) 25 (12.5) 32 (16) 15 (7.5) 200 Group 2 Public 55 (27.36) 49 (24.37) 34 (16.91) 27 (13.42) 30 (14.92) 5 (2.48) 200 Total 125 76 65 52 62 20 400

Advertisement Manager Website E-mail Other Customer Mobile banking Total

Table 5.47 reveals that 70 (35 per cent) respondents of private sector and 55 (27 per cent) of public sector came to know about e-banking through advertisement, 27 (13.5 per cent) of private and 49(24 per cent) of public came to know through manager, through websites 31(15.5 per cent) in private and 34(16.9 per cent) in public sector. So the knowledge about e-banking services is highest through the advertisement of banks and lowest through the mobile banking services in both public sector and private sector banks. The knowledge through managers, websites, email and other customers comprises a very small proportion. Table 5.48 Operational Problems in the Use of Modern Technology Server Down Untrained Personnel ATM not Working Properly Deposit of Cash Ignorance Not Attending Phone Call Location Private 7 (3.5) 17 (8.5) 39 (19.5) 22 (11) 25 (12.5) 17 (8.5) 19 (9.5) 161 Public 25 (12.43) 18 (8.95) 37 (18.40) 27 (13.43) 16 (7.96) 16 (7.96) 25 (12.43) Total 32 35 76 49 41 33 44

Availability of Currency

25 21 46 (12.5) (10.44) Risk of Loss of Currency 22 8 30 (11) (3.98) Delay in Services 7 7 14 (3.5) (3.48) Total 200 200 400 As regard the nature of problem is concerned, in private sector 3.5 percent encountered it due to server down, 8.5 percent due to untrained personnel, 19.5 due to ATM working, 25 percent for the ignorance of customer themselves, 25 percent for availability of cash and 7 percent due to delay of services. However in the public sector the situation is slightly different, here the customers encounters the problem due server down (12.43 percent), ATM not working properly (18.40 percent), location of onsite and offsite ATM (12.43 percent).The results showed that the respondents who had encounter problem with the bank had filed the complaint against their banks. To conclude, once the problem exists no matter how it is resolved it will influence the customer switching to another bank. Table 5.49 Problems in E-banking Services Yes No Total Private 127 (63.5) 73 (36.5) 200 Public 104 (51.74) 96 (47.76) 200 Total 231 169 400

Table 5.49 shows that in private sector 127 (63.5 per cent) and 104 (51.4 per cent) in public sector encounters problems in using e-banking services. Further 96(47.76 per cent) in public sector and 73(36.5 per cent) in private sector are having no problem in rendering the services. This shows that the problems in private sector banks are high comparative to public sector services. Table 5.50 Filing of Complaint Private Public 64 90 (32) (44.77) 136 110 (68) (54.72) 200 200

Yes No Total

Total 154 246 400

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Table 5.50 shows that 64 (32 per cent) in private and 90(44 per cent) in public sector lodged a complaint. Whereas 136(68 per cent) in private and 110(54.72 per cent) in public sector has not raised their complaint regarding their services.

Table 5.51 Satisfaction Level of Customers Regarding E-banking Services Public Internet Banking Services Mobile Banking Services Phone Banking Services Home Banking Services ATM Facility Credit Card Facility Debit Card Facility Electronic Fund Transfer Bill Payment Service Inter-Connectivityof ATMs Request Facility and Services **p-value is significant at 0.01 level Table 5.51 indicated that there is a significant difference in the customers opinion regarding different e-banking services. Although both sectors are providing good services to their customers but out of 11 services, statistical difference was found in four e-banking services that were in credit card facility, bill payment services, interconnectivity of ATMs and request facility. In all these four services mean scores of public sector banks are high. However internet banking, phone banking and debit card services of private sector banks are good with mean scores of 3.81, 3.35 and 3.83. However it should be noted that the services are either average or good but not very good. So both the banks should improve internet, phone, mobile, ATM, EFT, credit and debit cards services to improve the overall quality of e-banking. To deliver better quality services to the customers, it is required that services must be standardized and for standardizing the quality of a service, the delivery of the 3.68 3.37 3.31 3.35 3.91 3.78 3.79 3.69 3.59 3.85 3.85 Private 3.81 3.34 3.35 3.19 3.72 3.51 3.83 3.59 3.22 3.18 3.18 3.50 t-value -1.358 0.313 -0.428 1.485 1.675 2.747 -0.434 0.997 3.545 7.959 7.634 -0.696 p-value 0.175 0.754 0.668 0.138 0.094 0.006** 0.664 0.319 0.000** 0.000** 0.000** 0.486

Information of New Products 3.43

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service must be substituted with machines wherever possible. The conceptualization of SERVQUAL instrument provided immense help in determining the level of service quality and the expectation of customers from the banking Industry. With the help model, banks can focus more upon delivering qualitative electronic banking services to the customers The dimensions of service quality provided a close view regarding the ebanking impact on service quality. A comparative analysis of both sectors shows that there exists a significant gap in providing the services. A closer scrutiny of the results shows that reliability, credibility, communication and access are significant predictors of customer satisfaction in private sector banks. However security, understanding, tangibility, competence and responsiveness are significant predictors of customers satisfaction in public sector banks. For the greater adoption of e-banking among customers, firstly its on the part of the banks to assure that whether they are providing qualitative and timely e-banking services to their customers only than the level of satisfaction can be raised. Both the banks should work in a competitive spirit with each other to further improve the level of services.

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